California Minimum Wage 2026
The minimum wage in California is $16.90 per hour in 2026, effective January 1, 2026. California does not allow a tip credit, so tipped employees earn the full minimum wage plus tips.
What is the minimum wage in California in 2026?
The California minimum wage is $16.90 per hour as of January 1, 2026, up from $16.50 through the state's annual CPI adjustment. That statewide number is only the starting point: California layers sector minimums and dozens of city ordinances on top of it, so many employers owe considerably more.
Fast food chains with 60 or more locations nationally have paid a $20.00 minimum since April 2024 under AB 1228, and the Fast Food Council can raise that figure, so check the current rate before setting pay. Healthcare facilities follow separate, higher minimums under SB 525 that are phasing toward $25.00. On top of that, dozens of cities set their own rates: San Francisco and Los Angeles are in the $17 to $19 plus range and adjust each July, and West Hollywood is among the highest in the country.
Tipped minimum wage in California
California does not allow a tip credit. Tipped employees must receive the full applicable minimum wage in cash, whether that is the $16.90 state rate, a higher city rate, or the $20.00 fast food minimum, and tips are always earned on top.
California also treats tips strictly as employee property: employers and managers cannot take any share, and credit card processing fees cannot be deducted from tips. For hospitality employers arriving from tip-credit states, labor cost models need a full rebuild.
California minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $13.00 | $13.00 |
| 2021 | $14.00 | $14.00 |
| 2022 | $15.00 | $15.00 |
| 2023 | $15.50 | $15.50 |
| 2024 | $16.00 | $16.00 |
| 2025 | $16.50 | $16.50 |
| 2026 | $16.90 | $16.90 |
Upcoming minimum wage increases in California
The statewide rate adjusts every January 1 based on the Consumer Price Index, capped at 3.5 percent per year. The Director of Finance certifies the new rate each summer, so employers get roughly six months of notice before the January change.
Sector minimums move on their own schedules: the Fast Food Council can adjust the $20.00 fast food rate, and SB 525 healthcare minimums continue stepping toward $25.00 depending on facility type. City rates mostly adjust each July 1. Multi-location employers should audit all three layers twice a year.
Minimum wage by city in California
Dozens of California cities and counties set minimum wages above the state's $16.90, and most adjust annually on July 1 rather than January 1. Where a local rate is higher, the local rate wins.
The practical rule for multi-site employers: map every work location against its local ordinance, including remote employees working from home inside a covered city. San Francisco, Los Angeles, and West Hollywood are among the highest, but smaller cities such as Emeryville and Mountain View also run well above the state floor.
City rate above the state minimum, adjusts each July 1; confirm the current figure
City rate above the state minimum, adjusts each July 1; confirm the current figure
City rate above the state minimum, adjusts each January; confirm the current figure
State rate applies
What California employers need to know
No tip credit
Pay tipped employees the full applicable minimum wage in cash. Tips are employee property under Labor Code section 351, and employers may not share in them or deduct processing fees.
Daily overtime and double time
California requires overtime at 1.5x after 8 hours in a workday and double time after 12, plus overtime for the first 8 hours on a seventh consecutive workday. Weekly overtime after 40 hours applies too.
Sector minimums
Fast food chains with 60 or more national locations owe at least $20.00 per hour under AB 1228, and covered healthcare facilities follow SB 525 schedules phasing toward $25.00. Verify current figures; both can move independently of the state rate.
Exempt salary threshold
Exempt executive, administrative, and professional employees must earn at least twice the state minimum wage for full-time work. At $16.90 that is $70,304 per year in 2026, and it rises automatically with every state rate increase.
How other states compare
See how California's $16.90 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the California labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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